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When it comes to marketing and sales outreach, the general wisdom is that the closer you are to your audience of ideal customers, the more likely they are to convert. The more conversions you make, the more money you make. It seems simple enough – if you can figure out who your ideal customers are.
Segmentation or lead scoring?
Segmentation is one way to categorize customers for more focused purposes, but this is easier said than done because there are many ways to categorize customers – from demographics to psychographics to geography (and many more).
In our experience, the most effective and efficient way to segment customers to increase profit potential is through lead scoring. How to determine the lead score? A very basic definition is this: it’s a number assigned to a consumer that reflects the likelihood that they will act in response to a particular message or product offer. The higher the number, the more likely the customer will engage and make a purchase.
Customer Lead Score can also change based on product or message. When we work with clients, we ask them to be very specific about the goal they want to achieve with a particular product or campaign. If the goal is to sell customers on a new product, we want to identify potential leads earlier than those who are likely to wait (for various reasons).
Lead scoring and the buyer’s journey
An approach to converting early adopters will not be the same as nurturing late adopters and moving the latter group to the “consideration” stage. Late adopters need more time, more evidence, and likely a price drop before they act. To no one’s surprise, they won’t be ideal customers if you launch a new product. How to identify early adopters?
Predicting behavior to focus effort
Lead scoring can “predict” which customers will take action and which will not. Here’s an example: If a sales team can predict who will respond to a cold call or email, it means they can prioritize who to contact to improve lead time and increase sales. If you’ve never thought that lead points could make a difference, I’m here to tell you that we’ve seen them work for our clients.
I won’t go into the details of how the Wrench lead scoring algorithm works, but I will say that we’ve made it easy for clients to upload their contact and customer lists via CSV file or CRM integration. The Wrench web app provides a straightforward method for uploading product or brand descriptions. From there, the Wrench platform quickly generates lead scores, so the marketing or sales team can quickly prioritize who to target.
Lead scoring makes the most of customer data
Using lead scoring, one of our clients found that only 17% of the contacts in their database fit their customer profile. This insight gave the client the information they needed to prioritize high-scoring contacts that were more likely to convert, saving them time and resources. In other words, if you knew which 20% of your customers would convert, you would know where to spend more time and attention and see results faster. Wrench’s Lead Score AI feature can increase your conversion rate by up to 5x, and in highly competitive environments, this can be a significant advantage.
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